Digital currencies: Prices are declining but overall capitalization grows – FXStreetOctober 1, 2020
Bitcoin has grown by more than one per cent in the last day and traded at around $10,900. The crypto market in general demonstrates moderate positive dynamics following the growth of stock indices and risk assets. Over the last week, the total capitalization of cryptocurrencies has grown by 7%, approaching $350 billion.
Altcoins are showing more impressive positive dynamics, which leads the market to the growth zone. Although Coin Metrics concluded that 72% of the top 250 digital currencies have fallen over the past week, the wider format shows that alternative cryptocurrencies are holding up well. The leading altcoin Ethereum (ETH) has grown by 180% since the beginning of 2020. XRP showed much more modest results, adding 26%. Given the serious claims of the crypto market participants to the project, it shows good stability.
Many are frightened by the increased dependence of the crypto dynamics on the moods of traditional markets. In turn, they are affected by the situation with coronavirus and, even more so, by stimulating measures taken by governments and the central banks. One way or another, cryptocurrencies can still boast a steady demand and a quick return to growth after the March collapse.
The current price dynamics of anonymous cryptocurrencies are also worth noting. The most famous projects Monero (XMR), ZCash (ZEC), and DASH showed daily growth rates of 13%, 12%, and 5% respectively. If we take the figures for the week, Monero (XMR) spiked by 26%, ZCash (ZEC) by 28%, and DASH by 7%. All 3 digital currencies are the stars of the “2017 Rally,” but in recent years, interest has declined significantly, pushing prices down far from historical highs. Nevertheless, the demand for anonymity continues to grow, in contrast to the global direction of governments to financial de-anonymization.